Management accounting information system and intellectual capital: a way to increase SME’s business performance

Abstract

Purpose – The paper aims to clarify the unclear relationship between management accounting information systems and SME business performance by having intellectual capital as mediating variable. This will expand the domain of management accounting information usage from SME’s perspective. Design/methodology/approach – The paper used a descriptive study using the close-ended questionnaire distributed to 428 SMEs in East Java Region. The data were complemented by statistical analysis using SMART PLS to test the mediation role of intellectual capital. Findings – The paper provided empirical evidence that intellectual capital plays as a quasi mediating for management accounting information system and business performance relationship. This encouraged SME to optimize their IT usage to maximize the benefit of implementing MAIS. Research limitations/implications – Since management accounting system needs for business varied, future study needs to consider the level of IT usage. Therefore, future researchers are encouraged to investigate how to set the usage level. Practical implications – The paper included implications for the development of higher level of IT usage, such as management accounting information system to gain the benefits, that is increased business performance. Originality value – This paper filled the gap in IT usage from SMEs’ perspective by expanding the role of intellectual capital on the relationship of management accounting information systems on business performance.

Accounting Information Systems and Financial Literacy impact on SMEs' performance

“…The information system will assist employees in processing accounting and financial data and producing financial reports that can be used to make business decisions by interested parties. The results of the study are in line with research Hariyati et al (2022) reported that the accounting information system has a positive effect on the performance of SMEs. Information systems are part of intellectual capital, namely the dimensions of technological capital that will help companies increase their competitive advantage.…”

“…Studies Alshirah et al (2021), Kareem et al (2021) and Budiarto & Prabowo (2015) report that accounting information systems have a positive effect on company performance, the more modern technology used by SMEs will encourage the efficiency and effectiveness of their performance. Technology helps someone to facilitate one's work and can create a competitive advantage (Ahmad & Al-Shbiel, 2019;Hariyati et al, 2022) H1: Accounting Information Systems have a positive effect on SMEs Performance.…”

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

“…Regarding company performance, scholars have pointed out the higher profitability of SMEs which are adequately supported by CA and MA (Uchegbu et al, 2021;Imo & Chukwu, 2022). This influence of MA tools, particularly CA systems and strategic MA tools, has been proven in both manufacturing and service companies (Alvarez et al, 2021;Hariyati et al, 2023). The opposite is also likely the case, that is, companies with high performance are also the ones that invest more in CA, which we remember being a very useful practice but still entailing a burden.…”

The Influence of Business Environment and Organizational Culture on Management Accounting Information System

“…Management accounting information system is a type of information system that generates output using input and a variety of necessary procedures, producing a product that can satisfy management's demands for decision-making to accomplish organizational objectives (Ramadhan, 2018). Management accounting information systems have a positive influence on business performance, the resulting information is needed by managers in appropriate and effective decision making to improve business performance and survive in competition (Hariyati et al, 2022). The measurement of MAIS is using DeLone and McLane's model are involving six elements:…”